Swiss Investment Fund
for Emerging Markets

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EVN Finance JSC

EVN Finance is a deposit-taking non-bank financial institution regulated by the State Bank of Vietnam and the second largest finance company in Vietnam. It’s the only finance company authorised by the Central Bank to accept corporate deposits thereby filling a niche in the market. Since recently, it offers tailor-made products catering to the needs of small-scale solar photovoltaic panel developers. SIFEM provides a senior loan of USD 10m to EVN Finance to promote job creation through SMEs and foster renewable energy production.

EVN Finance JSC

EVN Finance is a deposit-taking non-bank financial institution regulated by the State Bank of Vietnam and the second largest finance company in Vietnam. It’s the only finance company authorised by the Central Bank to accept corporate deposits thereby filling a niche in the market. Since recently, it offers tailor-made products catering to the needs of small-scale solar photovoltaic panel developers. SIFEM provides a senior loan of USD 10m to EVN Finance to promote job creation through SMEs and foster renewable energy production.

About the fund

Vietnam is one of SIFEM’s priority countries. Small and medium enterprises (SMEs) in Vietnam are one of the main drivers for poverty alleviation, particularly in rural areas. However, their contribution to Vietnam’s economy has been historically limited due to the dominance of large state-owned enterprises. SME development faces a substantial financing gap. The loan to EVN Finance is an opportunity for SIFEM to support access to credit for SMEs and to the post-Covid-recovery of the economy overall. With 50% of SIFEM’s loan earmarked for SME lending, it will support the growth of EVN Finance’s SME portfolio. The other 50% of the loan will be ringfenced to climate mitigation projects, mainly the financing of small-scale solar photovoltaic projects and C&I projects for which EVN Finance has created dedicated products. This transaction is SIFEM’s first green loan. Through its contribution to the development of the renewable energy sector in Vietnam, it responds directly to the strategic objective of fighting climate change. 

Reference code
2022-05
Status
Active
Date of commmitment
October 2022
Date of exit
-
SIFEM commitment
USD
10,000,000
Asset class
Private Debt
Investment strategy
Direct Investment

Target focus

Renewable Energy
SME Development
Fund manager
EVN Finance